Clarificatory amendment to S. 14 IBC retrospective, Moratorium does not extend to Personal Guarantees: SC

Murali Krishnan August 14 2018
IBC, religious functions

The Supreme Court today clarified that moratorium under Section 14 of the Insolvency and Bankruptcy Code (IBC) does not apply with respect to personal guarantees.

The Court noted that a clarificatory amendment had already been passed in this regard by way of an ordinance dated June 6, 2018 and the same has retrospective application.

The Court, therefore, set aside the judgment of the National Company Law Appellate Tribunal (NCLAT) and ruled that personal guarantees can be invoked when the company in favour of . . .

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